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Rekenthaler Report

Should You Let Your Stocks Ride?

The pros and cons of rebalancing.

From Riskless to Risky
For this column, assume three possible investments: 1) stocks, 2) bonds, 3) cash. The future returns on these assets will be modest because fixed-income yields are historically low. Stocks will gain an annualized 7%, bonds 3%, and cash 2%.